SPAIN. The ten major groups that expressed initial interest in bidding for the Aena duty free contracts covering 27 Spanish airports will move to the next stage after meeting solvency criteria, the airport company has confirmed. Candidates have 12 weeks to submit their bids with a deadline of 3 May.
The bidders include incumbent Dufry plus other Europe-based groups Gebr. Heinemann, Lagardère Travel Retail, Aer Rianta International and Setur Duty Free of Türkiye.
Others include China Duty Free Group, Hotel Shilla (parent of The Shilla Duty Free), Bahrain Duty Free, GMR Airports of India, and UETA (controlled by Duty Free Americas).
Several of these groups have partnerships or subsidiaries that are moving to the next stage, including Dufry through its Canary Islands joint venture Canariensis, and Heinemann through its Smartseller JV with casualfood.
Aena noted that this is the first time that Asian and American businesses have expressed an interest in entering Spanish airports, underlining the great interest in the world’s largest ever duty free contract by projected turnover.
The expected turnover in this bidding process is €18 billion and includes 86 duty free sales outlets, plus a large number of premises dedicated to other categories.
Together, they will occupy an approximate retail surface area of 66,000sq m, which represents an increase of more than +40% compared to present levels across the 27 airports.
Aena said this new bidding process will involve plans to refurbish commercial spaces at the airports in its network. Current contracts are in force until 31 October 2023.
The bidding specifications include a greater number of lots compared to the existing set up, with a total of six compared to the three in the previous bidding process. Aena added that the six lots are of sufficient size for economies of scale to be developed.
The airport company noted that its main objectives in attracting interest in the contract have been fulfilled, with much greater participation and competition than has been seen historically.
The duration of the contract has been substantially increased, moving from 7 to 12 years, with the option of three annual extensions. Aena said it has thus responded to an important request from the operators, which is to optimise the amortisation of the investments.
The bidding process strategy also aims to maximise the value of this business line by reaching more customers and boosting global sales; to attract the largest number of international operators to bid for the different lots (establishing rules that avoid empty lots being awarded); to diversify the business (expanding product categories and services); to adapt to changing trends that are occurring in both passenger type and the model; and to incorporate and support the development and implementation of new technologies and digitisation.
These objectives, aimed at maximising revenue, are anchored by Aena’s fundamental pillars: sustainability, technology and customer experience, the company said.
Aena also noted that the impact of Brexit has been taken into account, as it represents a major change in the structure of its business, with duty free the key sales channel in almost all bid packages. British passengers, the company said, represent Aena’s main market. 
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